The European Central Bank (ECB) has taken another step toward the introduction of a digital euro. As part of the project’s preparation phase, the ECB announced framework agreements with seven technology companies tasked with developing key components of the central bank digital currency (CBDC). If approved, the digital euro could launch in 2029.

Seven partners one goal: a secure and functional digital currency

According to Thursday’s announcement, the selected partners include Feedzai, a company specializing in fraud detection powered by artificial intelligence, and the security technology firm Giesecke+Devrient (G+D), which will develop solutions for secure offline payments in digital euros.

“After signing the framework agreements, G+D and other successful suppliers will work with the ECB to finalize planning and scheduling,” said Dr. Ralf Wintergerst, CEO of Giesecke+Devrient. Their work will include designing, integrating, and developing the Digital Euro Service Platform in line with European legislation and under the supervision of the ECB Governing Council.

The project will also involve building functionalities for secure transmission of payment information, risk and fraud management, and so-called “alias lookup,” enabling users to send and receive payments without knowing the other party’s payment service provider.

Final decision depends on regulation

While the framework agreements represent an important milestone, the final decision on launching the digital euro still depends on legislation. “The actual development of the individual components will be decided later, based on the Governing Council’s decision on the next phase of the project,” the ECB said. For now, the agreements include no financial compensation and contain safeguards to adjust the project scope according to regulatory changes.

The European Central Bank has been exploring the potential of a digital euro since 2021, entering the preparation phase in late 2023. According to one ECB official, if everything goes according to plan, the currency could go live in 2029.

Digital euro as an EU strategic priority

The digital euro project holds strategic importance for the EU: it aims not only to modernize the payment system and strengthen European sovereignty in financial technologies, but also to respond to global trends — particularly the growing influence of stablecoins and CBDCs in other regions. Selecting technology partners is therefore a crucial step toward ensuring that Europe has its own secure, regulated digital currency.

Sources:

https://www.ecb.europa.eu/press/intro/news/html/ecb.mipnews251002.en.html

https://cointelegraph.com/news/ecb-preparation-phase-digital-euro